NF Energy Saving Corp (NASDAQ: NFEC) is having an incredibly strong trading session in the market today, and for good reason. The company announced two new contracts that would lead to substantial revenue. Of course, as soon as investors saw the news, the stock started to make a run for the top. Today, we’ll talk about the news, what we’re seeing from NFEC, and what we’ll be watching for with regard to the stock ahead.
NFEC Announces New Contract
As mentioned above, NF Energy Saving is having an incredibly strong day in the market today after announcing that it has entered into a new contract. In a press release issued early this morning, the company announced that it has entered into two new sales contracts. According to the release, the sales contracts surround the supply of valves and come with an aggregate value of $2,500,000.
In the release, NFEC said that it expects to deliver these valves in the second and third quarters of this year. The companies involved in the contract include One Paper Co., Ltd, which is in the Shangdong Province, and One Comprehensive Development Co., Ltd, a company located in Shanghai. While the company didn’t provide a direct update to guidance, NFEC did say that it expects to see this have a positive impact on its operating results for this year.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, through this contract, the company is going to see substantial revenue growth. So, it’s no surprise to see that the stock is making a run for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:14), NFEC is trading at $3.05 per share after a gain of $2.04 per share (201.98%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NFEC. In particular, we’ll be following the performance of the company under this new contract as well as the revenue growth that we see on financial statements as a result. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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